Net revenues for the second quarter were $23.1 million. This compares to net revenue of $18.6 million reported in the first quarter of fiscal 2006 and $27.0 million for the second quarter of fiscal year 2005.

On a GAAP basis, the net loss in the second quarter of fiscal 2006 was $3.2 million, or ($0.13) per share compared with a net loss of $7.9 million, or ($0.32) per share for the first quarter of fiscal 2006 and net income of $3.0 million, and $0.12 per share for the second quarter of fiscal 2005.

On a non-GAAP basis in the second quarter of fiscal 2006, Phoenix reported a net loss of $ 1.8 million, or $(0.07), compared to a non-GAAP net loss of $6.5 million, or ($0.26) for the first quarter of fiscal 2006. The non-GAAP adjustment excludes the impact of non-cash equity based compensation expense which was required according to Statement of Financial Accounting Standards (SFAS 123R) commencing during the first quarter of fiscal 2006. The adoption of this accounting standard in October 2005 resulted in $1.4 million of additional expense in each quarter of fiscal 2006.

Revenue from new businesses, which includes PC applications and total revenues from non-PC devices, accounted for $7.6 million, or 33% of total revenue during the March 31, 2006 quarter, compared to $6.0 million, or 32% of total revenue in the previous quarter and $9.0 million, or 33% in the second fiscal quarter of 2005.

Phoenix Technologies (Nasdaq:PTEC) is a global market leader in device-defining software that assures endpoint security, from the start. For more information, visit www.phoenix.com.